Medallion stamps are special certifications that guarantee endorsement of documents when transferring securities or assets, such as bank shares. You can obtain medallion signature guarantees from banks that participate in the STAMP program, although this requires an in-person visit with photo identification.
Medallion signature guarantees are different than notary stamps in that they serve to verify both your authenticity and legal ownership of the asset being transferred.
They are a type of signature guarantee
A medallion stamp verifies the identity and signature of parties who transfer securities or investments, such as those transferring shares from an estate after death of shareholder; Trust Agreements; Power of Attorney documents. Banks, credit unions, and broker-dealers that participate in one of three Medallion Signature Guarantee programs – Kemark service subscribed to by these financial institutions along with leasing document reader/printers with security ink for authentication are all eligible to obtain these seals.
A medallion signature differs from notary stamps in that it verifies more than just who signed, verifying both identity and legal authority to transfer assets. Unfortunately, financial institutions fear liability issues and generally only offer this service to well-established customers at a nominal fee.
They are a form of security
Medallion Signature Guarantee (MSG) is a type of security that verifies the signature on a stock transfer document, issued by financial institutions that pledge reimbursement of any fraudulent signatures to the Securities and Exchange Commission if found non-authentic or acquired fraudulently. Unfortunately, getting an MSG may be challenging due to high costs and liability concerns; one reader recently posted in a forum indicating difficulty getting one issued from his bank – generally, banks only offer this service to existing customers.
An MSG (Minimum Signature Guarantee) stamp issued by banks or financial institutions that verifies that signatures used to transfer securities are authentic is a different than signature guarantees provided by notaries; rather than backing it with their assets as in signature guarantees do, MSGs verify their integrity by backing up with real assets belonging to the financial institution that issued them and can often be required when holding physical certificates rather than through broker.
They are a form of identity verification
Medallion stamps use green high security ink to verify signatures on important financial documents, and are required for many financial transactions such as the sale or transfer of securities or assets. Financial institutions use medallion stamps to make sure signers have authority to make financial decisions on behalf of account holders.
These stamps are typically only issued by banks and credit unions who belong to an established medallion program and agree to accept liability in case of fraud or forgery. Due to identity theft concerns in the 1990s, this stamp type was enhanced with an invisible security barcode and special ink that can only be read by Stamp 2000 Plus scanners used by transfer agents.
Note that medallion signature guarantees are distinct from notary public seals in that notaries publics must meet specific state requirements while medallion signature guarantees are guaranteed by the financial institution issuing them.
They are a form of authentication
Medallion signature guarantees are special certification stamps that verify the signature on a document as genuine, and are commonly needed when securities owners wish to transfer shares or bonds. Banks and credit unions generally issue medallion signature guarantees; fees may apply depending on which institution issues them. In order to obtain one yourself, current government issued identification is needed along with proof that you own the securities being transferred.
Signature guarantee services typically are only provided to bank customers; most financial institutions do not extend this privilege to non-customers; although, there may be exceptions.
To avoid identity theft or fraud when applying for a medallion signature guarantee, always visit the institution personally and ensure your information has been verified by them.
